O’Melveny Advises Synaptics in Acquisition of Rights to Broadcom’s Wireless IoT Connectivity Business
July 7, 2020
FOR IMMEDIATE RELEASE
SILICON VALLEY—July 7, 2020—O’Melveny advised Synaptics® Incorporated (Nasdaq: SYNA) to structure definitive agreements under which Synaptics will acquire certain assets and manufacturing rights associated with the wireless IoT business of Broadcom (Nasdaq: AVGO) for approximately $250 million in an all-cash transaction.
Under the terms of the agreements, Synaptics will acquire certain rights to Broadcom’s existing Wi-Fi, Bluetooth, and GPS/GNSS products and business in the IoT market, as well as future roadmap devices designed in advanced process nodes. The acquisition further strengthens and accelerates Synaptics’ position in the fast-growing consumer IoT market.
Synaptics expects the transaction to add approximately $65 million in current annualized sales and provide significant revenue growth potential. The transaction is expected to be immediately accretive to Synaptics’ non-GAAP gross margins and non-GAAP earnings post-close.
The O’Melveny deal team was led by Silicon Valley M&A partner David Makarechian, Technology Transactions partner Heather Meeker, and counsel Melissa Wright. O’Melveny offers a complete suite of legal and business expertise to players in the technology arena, supporting growth at every stage of the corporate life cycle—from early-stage startups to multi-billion-dollar global enterprises. Lean more at: https://www.omm.com/momentum.
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Contact:
Christopher Rieck
O’Melveny & Myers LLP
+1 212 326 2218
crieck@omm.com
The following press release was issued by Synaptics:
Synaptics to Acquire Rights to Broadcom’s Wireless IoT Connectivity Business
SAN JOSE, Calif., July 7, 2020 – Synaptics® Incorporated (Nasdaq: SYNA) today announced the signing of definitive agreements under which Synaptics will acquire certain assets and manufacturing rights associated with the wireless IoT business of Broadcom (Nasdaq: AVGO) for approximately $250 million in an all-cash transaction. Under the terms of the agreements, Synaptics will acquire certain rights to Broadcom’s existing Wi-Fi, Bluetooth and GPS/GNSS products and business in the IoT market as well as future roadmap devices designed in advanced process nodes. The acquisition further strengthens and accelerates Synaptics’ position in the fast-growing consumer IoT market.
Synaptics expects the transaction to add approximately $65 million in current annualized sales and provide significant revenue growth potential. The transaction is expected to be immediately accretive to Synaptics’ non-GAAP gross margins and non-GAAP earnings post-close.
“Expanding our offering in the high growth IoT market has been one of the major focus areas for Synaptics and the addition of best-in-class wireless connectivity technology to our portfolio significantly enhances our overall position,” said Michael Hurlston, president and CEO, Synaptics. “This acquisition complements Synaptics’ ability to sell into a broad range of devices such as IP cameras, smart displays, speakers, home automation, and gaming consoles – all of which require cutting-edge technologies including Wi-Fi 6 and 6E, Bluetooth 5.2 and GPS L5.”
The transaction, which has been approved by the board of directors of Synaptics, is expected to close in Synaptics’ first quarter of fiscal year 2021, subject to customary closing conditions. Synaptics expects to finance the transaction from its existing on-hand cash balance and is not subject to any financing conditions.
Webcast and Conference Call information:
Synaptics will host a teleconference and webcast to discuss the transaction today July 7, 2020 at 2:00 p.m. Pacific Time. To access the call dial 888-394-8218 and enter access code 5797334.
Supplementary slides and a live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the company’s website at https://investor.synaptics.com/.
About Synaptics:
Synaptics is the pioneer and leader of human interface solutions, bringing innovative and intuitive user experiences to intelligent devices. Synaptics’ broad portfolio of touch, display, biometrics, voice, audio, and multimedia products is built on the company’s rich R&D, extensive IP and dependable supply chain capabilities. With solutions designed for mobile, PC, smart home, and automotive industries, Synaptics combines ease of use, functionality and aesthetics to enable products that help make our digital lives more productive, secure and enjoyable. (Nasdaq: SYNA). Join Synaptics on Twitter, LinkedIn, and Facebook, or visit www.synaptics.com.
Synaptics, and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.